Money Makeover: December 2014

Editorial Note: after some conversations at home, I’m going to spend my time in these posts talking about what it is we’re doing, rather than focusing on dollar amounts. I’ll keep the starting amount of debt in the first section simply because I’ve already mentioned it enough that there’s no point in obfuscating the issue.

So. Welcome to the Total Money Makeover! Again. We’re chugging along now, and have decelerated into a “grind it out” mode. My contracting job just turned into a full-time gig (and a cut in pay), but with it comes reduced health care costs…so it might be a wash. I’m currently brainstorming other ideas for bringing in some much-needed cash to get this whole endeavor back into the fast lane. Hell, I’d settle for medium-paced lane — which is more realistic, given the various medical expenses we’ve incurred, along with Sam/Eddy daycare, and Eddy’s impending pre-school. Plus the holidays. Jesus. Will it never end?

Starting in the hole: $74,000. (Includes the fancy new minivan.)
Current debt load: I don’t even fucking know anymore. Seriously. I haven’t the foggiest idea of where we’re at. I can tell you that we’re better off than we were four months ago.

Step 2: Debt Snowball

When budgets go to shit, this is the place that gets hit hardest. We’re getting back on track to finish crushing the credit card debt, but we’re not going to be at the same pace we were at (originally February 2014 completion). This is largely due to new medical bills, prescriptions, and so on. We’ll get there.

  • Amazon — done, August 2014
  • Macy’s — done, August 2014
  • Chase — done, August 2014
  • Citi — soon?
  • Wells Fargo — projected complete TBD
  • Bank of America — projected complete TBD

Citi card isn’t paid off yet, as planned. We’re rolling the Wells Fargo and Bank of America cards into a new zero-interest card that we got specifically for that purpose, and we’ll be hammering that hard in the coming months. After that, the student loans, and then the Honda. After that: Step 3.

Emotional State

5/10. I can’t even right now. Started with the emotional high of getting three cards paid off quickly, and now we’re grinding. It’s tough. I know, consciously, we’re doing okay at this, and that we’re making measurable progress every month, but it’s still tough. Chin up. Eyes forward. Let the ass-kicking continue.

2 thoughts on “Money Makeover: December 2014”

  1. If it was easy, everyone would do it. Getting into debt is the easiest thing to do in America. Out of debt is one if the hardest things you can do. But, once you slog through And look back, it feels really good. Buying a van with cash feels really dang good, something no one does…

    • True. And it’s all about the psychology surrounding the processes of getting in and getting out. Getting in gives you that instant-gratification high; getting out is a struggle because it’s the exact opposite. (I think the reason that Ramsey’s system works so well is because it capitalizes on the instant-gratification while getting you out of the hole.)

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